Rundle Company makes and sells lawn mowers for which it currently makes the engines. It has an opportunity to purchase the engines from a reliable manufacturer. The annual costs of making the engines are shown here.     Cost of materials (13,400 Units × $16) $ 214,400   Labor (13,400 Units × $17)   227,800   Depreciation on manufacturing equipment*   26,000   Salary of supervisor of engine production   76,000   Rental cost of equipment used to make engines   10,000   Allocated portion of corporate-level facility-sustaining costs   86,000   Total cost to make 13,400 engines $ 640,200     *The equipment has a book value of $96,000 but its market value is zero.   Required Determine the maximum price per unit that Rundle would be willing to pay for the engines. Determine the maximum price per unit that Rundle would be willing to pay for the engines, if production increased to 18,050 units?

Holiday Laboratories purchased a high-speed industrial centrifuge at a cost of $480,000. Shipping costs totaled $14,200. Foundation work to house the centrifuge cost $9,300. An additional water line had to be run to the equipment at a cost of $3,200. Labor and testing costs totaled $7,600. Materials used up in testing cost $3,900. (Leave no cells blank. Enter O where needed.) Required: 1. What is the total capitalized cost of the equipment? 2. How much of this amount should be expensed immediately? Complete this question by entering your answers in the tabs below. Required 1 Required 2 What is the total capitalized cost of the equipment? Cost of the equipment Required 1 Required 2 >

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Stella Company uses many kinds of machines in its operations. The following information relates to a machine that was acquired at the beginning of the current year: Cash paid for machine, including VAT of P96,000 Cost of transporting the machine Labor cost of installation by expert fitter 896,000 30,000 50,000 Labor cost of testing machine Cost of safety rails and platform surrounding machine Cost of water device to keep machine cool 40,000 60,000 80,000 Cost of adjustment to machine to make it operate more efficiently Estimated dismantling cost to be incurred as required by contract Insurance cost for the current year 75,000 65,000 15,000 Cost of training personnel who will use the machine 25,000 How much should be capitalized as cost of the machine?

Kim Kwon Digital Components Company assembles circuit boards by using a manually operated machine to insert electronic components. The original cost of the machine is $80,700, the accumulated depreciation is $32,300, its remaining useful life is 5 years, and its residual value is negligible. On May 4 of the current year, a proposal was made to replace the present manufacturing procedure with a fully automatic machine that has a purchase price of $167,900. The automatic machine has an estimated useful life of 5 years and no significant residual value. For use in evaluating the proposal, the accountant accumulated the following annual data on present and proposed operations:   PresentOperations   ProposedOperations   Sales $255,800   $255,800   Direct materials $87,200   $87,200   Direct labor 60,500   —   Power and maintenance 5,600   29,900   Taxes, insurance, etc. 2,000   6,700   Selling and administrative expenses 60,500   60,500   Total expenses $215,800   $184,300…

Munoz Company makes and sells lawn mowers for which it currently makes the engines. It has an opportunity to purchase the engines from a reliable manufacturer. The annual costs of making the engines are shown here.    Cost of materials (13,100 Units × $19) $ 248,900   Labor (13,100 Units × $12)   157,200   Depreciation on manufacturing equipment*   25,000   Salary of supervisor of engine production   69,000   Rental cost of equipment used to make engines   27,000   Allocated portion of corporate-level facility-sustaining costs   82,000   Total cost to make 13,100 engines $ 609,100     *The equipment has a book value of $108,000 but its market value is zero.Required Determine the maximum price per unit that Munoz would be willing to pay for the engines. Determine the maximum price per unit that Munoz would be willing to pay for the engines, if production increased to 18,650 units. (For all requirements, Round your answers to 2 decimal places.)

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Euclid Corporation processes a patented chemical, P-1, and produces two outputs, P-11 and P-12. In August, the costs to process P-1 are $144,000 for materials and $288,000 for conversion costs. P-11 has a sales value of $640,000 and P-12 has a sales value of $160,000. Required Using the net realizable value method, assign costs to P-11 and P- 12 for August.